April 11, 2025

Multiple U.S. States Push Bitcoin Initiatives

A growing wave of legislative activity is sweeping across the U.S., with several states proposing groundbreaking measures to integrate Bitcoin and cryptocurrencies into their financial frameworks. Recent developments in North Carolina, New Hampshire, and Florida highlight a bold shift toward regulatory clarity and institutional adoption of digital assets. These initiatives could reshape the crypto landscape, positioning the U.S. as a global leader in blockchain innovation.

North Carolina’s Digital Asset Freedom Act: Legalizing Crypto Payments

North Carolina has taken a significant step forward with its Digital Asset Freedom Act, introduced by state lawmakers to recognize cryptocurrencies as legal payment methods. The bill explicitly states that “digital assets are deemed valid means of exchange” and bars businesses from rejecting crypto-based transactions solely due to the use of digital currencies.

Key provisions of the law include:

Eligibility Criteria: Digital assets must meet stringent requirements to qualify:
- Market capitalization of at least $750 billion.
- Daily trading volume exceeding $10 billion.
- At least 10 years of active trading on open markets.
- Demonstrated security and resistance to censorship.
Decentralization Mandate: Cryptocurrencies must be launched without pre-mining, insider allocations, or centralized control. They must operate independently of any single entity or group.

Currently, only Bitcoin (BTC) meets these criteria, positioning it as the primary beneficiary of the legislation. The bill does not name specific assets but sets a high bar for adoption, ensuring only the most established and decentralized protocols qualify.

New Hampshire’s Bitcoin Reserve (SBR): Allocating 5% of State Funds

In a major vote on April 10, New Hampshire’s House of Representatives approved a Bitcoin Reserve (SBR) bill (SBR 2025) by a narrow margin of 192–179. If passed by the Senate and signed into law, the bill would allow the state treasurer to invest up to 5% of general and approved funds into Bitcoin and other qualifying digital assets.

Key details:

Investment Limits: The state’s general fund, valued at $3.6 billion as of 2024, could allocate up to $180 million to Bitcoin.
Eligibility: Investments are restricted to assets with a market cap exceeding $500 billion—a threshold currently met only by Bitcoin.
Storage and Governance: The bill outlines protocols for secure asset custody and management, emphasizing fiscal responsibility.

New Hampshire becomes the fourth state (after Arizona, Wyoming, and Tennessee) to advance SBR legislation through one legislative chamber. Arizona remains the frontrunner, with its SBR bill awaiting final approval.

Florida’s SBR Push and Federal Momentum

Florida’s Insurance and Banking Committee unanimously passed its SBR bill on April 10. The legislation now moves to three additional committees before reaching the state House. If enacted, it would permit Florida’s government to diversify its reserves with Bitcoin, following a similar framework to New Hampshire’s proposal.

The surge in state-level SBR initiatives coincides with federal efforts. U.S. Senator Cynthia Lummis recently introduced an updated Bitcoin Act, proposing the government hold over 1 million BTC in a national reserve. Meanwhile, former President Donald Trump has signaled support for a national crypto reserve, further fueling bipartisan interest in institutional Bitcoin adoption.

Why These Moves Matter

Mainstream Adoption: By legalizing crypto payments and reserves, states like North Carolina and New Hampshire are accelerating Bitcoin’s acceptance as a legitimate financial instrument.
Economic Competitiveness: These bills aim to attract tech innovators and crypto businesses, positioning states as hubs for blockchain investment.
Regulatory Clarity: Clear guidelines reduce legal uncertainty, encouraging businesses to adopt digital assets without fear of penalties.

Comparative Analysis: State vs. Global Crypto Policies

While the U.S. lags behind nations like El Salvador (where Bitcoin is legal tender) and Panama (which recognizes crypto as legal payment), state-level initiatives are closing the gap. For instance:

Wyoming: Since 2021, Wyoming has exempted crypto from sales tax and enabled self-sovereign digital wallets.
Texas: Proposed crypto-friendly bills, though none have yet passed.
El Salvador: Over 100,000 businesses accept Bitcoin via state-backed Chivo Wallet.

Challenges and Criticisms

Volatility Concerns: Critics argue Bitcoin’s price swings make it risky for reserves.
Regulatory Overreach: Some fear inconsistent state laws could lead to a fragmented regulatory landscape.
Security Risks: Custody of digital assets remains a technical and logistical hurdle.

Industry Reactions

Supporters: Crypto advocates like Michael Saylor (MicroStrategy) praise the moves as “a critical step toward financial innovation.”
Analysts: Firms like K33 Research view SBR proposals as signals of serious institutional interest.
Opponents: Skeptics, including some lawmakers, warn of potential taxpayer losses due to market volatility.

Broader Implications for Bitcoin

These state-level initiatives could:

Boost Bitcoin’s Price: Increased institutional demand from reserves may drive up prices.
Influence Federal Policy: Success at the state level may pressure Congress to address Bitcoin’s legal status nationwide.
Global Ripple Effect: U.S. states’ actions could inspire other countries to adopt similar frameworks.

Conclusion: A New Era for Crypto in the U.S.?

The legislative momentum in North Carolina, New Hampshire, and Florida marks a pivotal moment for Bitcoin’s trajectory in the U.S. While challenges remain, these bills signal a growing recognition of crypto’s potential as both a payment tool and a store of value. As more states follow suit, the U.S. could emerge as a global leader in crypto adoption, reshaping finance for decades to come.